A Practical Guide To Employee Benefit Trusts (EBTS) In Guernsey

Employee Benefit Trusts (EBTs) have been a feature of the Guernsey trust landscape for many years now. EBT is something of an umbrella term that can be used to describe lots of different styles of employee benefit arrangements and EBTs are often not specifically mentioned in Guernsey legislation or regulation.

The purpose of this guide is to share some of our experience and provide a practical guide for trustees, employers and employees as to how EBTs are established and operated in Guernsey.

Background

The evolution of the EBT helps to explain the current landscape.

Guernsey's involvement with EBTs is down to the UK.

UK companies have used EBTs for several decades to incentivise and retain staff – a commonly cited example being John Lewis Partnership.